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Former midstate McDonald's franchise to pay $211,000 in fines

Written by
The Associated Press
|
Feb 18, 2014 4:26 PM

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(Middletown) -- The U.S. Department of Labor says a former McDonald's franchise in central Pennsylvania has agreed to pay about $211,000 in back pay and fines for labor violations that affected 291 employees.

The Labor Department statement says Cheung Enterprises LLC and president Andrew Cheung of Middletown took advantage of 178 foreign student workers and other employees by making improper deductions from paychecks or failing to pay overtime.

Investigators also say the company charged the student workers excessive rent for substandard housing and deducted that from their paychecks.

A phone listing for Cheung Enterprises was no longer in service, and Cheung no longer operates any McDonald's franchises.

The headline was corrected at 3:59 p.m. on 2/19/14 to reflect the fact the party being fined is a former McDonald's franchisee.